Corruption in China

Jailed works chief 'received HK$4.6m in fees'

PUBLISHED : Thursday, 26 April, 2012, 12:00am
UPDATED : Thursday, 26 April, 2012, 12:00am


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Former Macau public works chief Ao Man-long received at least HK$4.65 million in 'consultation fees' from the Macau subsidiary of a Hong Kong firm over several sewage treatment plant projects, a court heard.

China State Construction Engineering, a Macau subsidiary of a Hong Kong company of the same name, gave the sum to business partners before it went to companies thought to be controlled by Ao, then transport and public works secretary, Macau's Court of Final Appeal heard.

The payments were linked to Macau sewage plants jointly developed by China State Construction Engineering, in both Hong Kong and Macau, Atal Engineering and Waterleau Global Water Technology.

Ao, who was jailed for 281/2 years in 2009 for corruption, faces six counts of taking bribes and three of money laundering.

Li Shizhong, chief financial officer of Macau's China State Construction Engineering, testified that Waterleau had asked his company to pay HK$780,000 in consultation fees.

Prosecutor Kuok Un Man asked why the subsidiary paid the fee instead of its parent company, saying it would mess up the Hong Kong firm's taxation. The fee did not appear in the projects' contract nor in the Hong Kong firm's financial report.

Li said his parent company could not hire labourers in Macau, so the subsidiary had to help. He said the money was converted into euros at Waterleau's request. Li said he did not know the money eventually went to Ecoline, a firm believed to be under Ao's control.

In late 2006, China State Construction Engineering in Hong Kong asked its Macau subsidiary to pay HK$1.98 million and HK$3.87 million to Best Choice, another company thought to be controlled by Ao.

It also asked the subsidiary to later pay half of the profits from the sewage projects to Best Choice. Li refused as he did not know the company.

Days later, another company, Yaohua Energy Saving Glass and Dorwin, asked Li to pay HK$3.87 million which eventually went to Best Choice. The hearing continues.


The number of years former Macau public works chief Ao Man-long was jailed for on corruption charges in 2009